Deals & Recruiting Roundup: Stratos, Prospera, Dynasty And Our Recruiter Of The Month

Allianz X And Constellation Wealth Are Investing Up To $450 million In AlTi, Smarsh Completes Acquisition Of TeleMessage, Stratos Recruits Osaic/Royal Alliance Advisor Firm, BD Prospera Recruits Painter, Smith & Amberg, Dynasty Financial Names Industry Veteran As Executive-in-Residence And Tony Montanari Is Our New Recruiter Of The Month.
Our Recruiter of the Month Tony Montanari, Senior Vice President of Business Development, Prospera Financial Services
Tony Montanari, Senior Vice President of Business Development, Prospera Financial Services

In addition to covering several recent deals, this edition of the Weekly Deals & Recruiting Roundup spotlights our new Recruiter Of The Month as part of a recurring Q&A with a different executive responsible for bringing on top strategic and advisory talent at leading firms.

For our Recruiter Of The Month, we speak with Tony Montanari, Senior Vice President of Business Development, Prospera Financial Services.

Meanwhile, for this week’s deals, we look at Allianz X and Constellation Wealth Capital investing up to $450 million in AlTi Global; regtech firm Smarsh saying it completed the acquisition of mobile messaging and voice compliance company TeleMessage; Stratos Wealth Partners announcing it recruited Redwood City, California-based Pettinelli Financial Partners; Dallas-based broker-dealer Prospera Financial Services saying it added Painter, Smith & Amberg, a firm with $650 million in AUM; and Dynasty Financial Partners tapping Tim Oden as an Executive-in-Residence.

Larry’s Take

Larry Roth, CEO, Wealth Solutions Report
Larry Roth, CEO, Wealth Solutions Report

Many advisory firm owners continue to make the easy mistake of deprioritizing succession planning until events catch up with them. Even with a successor decided, firms still need to build a plan around them to ensure that the succession goes smoothly.

In one of this week’s featured items, Pettinelli Financial Partners had the successor in place but still needed assistance from the firm that recruited them, Stratos Wealth Partners, in order to grease the wheels of leadership transition.

The earlier advisors can plan for succession, the easier it will be. Help can come in many forms and from various angles. The important thing is to start asking experts when you see the need on the horizon, though it may appear distant.

If you would like to discuss this Larry’s Take further, including how these trends might impact your business, please contact me at larry.roth@rlrstrategicpartners.com.

Mergers & Acquisitions

1. Allianz, Constellation Wealth To Invest Up To $450 Million In AlTi

    Nazim Cetin, CEO of Allianz X
    Nazim Cetin, CEO of Allianz X

    Allianz X, an investment arm of Allianz, and Constellation Wealth Capital (CWC) are investing up to $450 million in AlTi Global, AlTi said Thursday.

    AlTi is an independent global wealth and alternatives manager that manages or advises on about $68 billion in combined assets and has a network made up of over 490 professionals across three continents, it said.

    Allianz X, which has over 122 million private and corporate customers in more than 70 countries, will invest up to $300 million via one of its affiliates. CWC, an investment advisory firm that specializes in making investments in top wealth managers, will invest $150 million.

    AlTi will use the capital mainly to fund its mergers and acquisitions pipeline and organic growth activities, it said. That will expand the scale and reach of AlTi’s global ultra-high net worth wealth management and strategic alternatives business in existing and new markets, leveraging the industry expertise and relationships of Allianz and CWC, AlTi said.

    Nazim Cetin, CEO of Allianz X, and another Allianz representative will be appointed to AlTi’s board of directors, and CWC will have an observer seat on the board, after their respective investments are completed, AlTi said.

    2. Smarsh Completes Purchase Of TeleMessage

      Kim Crawford Goodman, CEO, Smarsh
      Kim Crawford Goodman, CEO, Smarsh

      Regtech firm Smarsh said Tuesday it completed the acquisition of mobile messaging and voice compliance company TeleMessage.

      The acquisition was first announced by Smarsh in May 2022. It was a phased acquisition, so the time period between when the deal was signed and closed wasn’t unusual, a company spokesperson said Thursday. The company declined to disclose what the purchase price was.

      The completion of the purchase comes as regulatory scrutiny around off-channel communications continues to grow.

      Smarsh’s acquisition of TeleMessage “demonstrates our commitment to continually innovating and acquiring cutting-edge technology that meets customers’ evolving needs and strengthens Smarsh’s leadership position in the digital communications compliance market,” Smarsh CEO Kim Crawford Goodman said.

      Advisor Transactions

      3. Stratos Onboards 20-Person California Firm

        Charles Shapiro, Founding Partner & Chief Development Officer, Stratos Wealth Partners
        Charles Shapiro, Founding Partner & Chief Development Officer, Stratos Wealth Partners

        Stratos Wealth Partners, part of Stratos Wealth Holdings, announced that it recruited Redwood City, California-based Pettinelli Financial Partners, with $700 million in client assets. The firm, a team of 20 advisors and staff led by Founder and Firm Ambassador Dennis Pettinelli and President Jon Pettinelli, joins Stratos from Osaic subsidiary Royal Alliance.

        Stratos Founding Partner and Chief Development Officer Charles Shapiro said, “Dennis, Jon and their team have built an incredible business helping multi-generational clients achieve financial goals and preserve wealth for future generations. We look forward to supporting their needs in practice management, recruiting and investment management strategies.”

        Dennis Pettinelli founded Pettinelli Financial Partners and Jon Pettinelli joined in 2001, rising to President in 2020. Stratos will help the firm complete its leadership transition from Dennis to Jon Pettinelli. Stratos will also provide services from its investment division Stratos Investment Management, formerly named Fundamentum.

        4. Prospera Adds $650 Million Advisor Team

          Charles Painter, President, Painter, Smith & Amberg
          Charles Painter, President, Painter, Smith & Amberg

          Dallas-based broker-dealer Prospera Financial Services said that Painter, Smith & Amberg, a firm with $650 million in assets under management (AUM) located in Redlands, California, has joined its network.

          Advisors Charles Painter, David Smith, Jeffrey Amberg and Kallie Rawson of Painter, Smith & Amberg have joined Prospera as part of the deal. The four advisors have 100 combined years of experience, and specialize in wealth management, 401(k) services and investment-related opportunities, Prospera said.

          Painter, Smith & Amberg was started in 1982 and offers the kind of sophisticated investment services that were once only available at large firms or wirehouses, according to Prospera.

          But Painter, Smith & Amberg also provides clients with the personal touch and accountability of a typical independent practice, Prospera said.

          Promotions & People Moves

          5. Dynasty Financial Partners Names Tim Oden As Executive-in-Residence

            Shirl Penney, CEO, Dynasty Financial Partners
            Shirl Penney, CEO, Dynasty Financial Partners

            Dynasty Financial Partners said Tuesday that industry veteran Tim Oden joined the company as an Executive-in-Residence for 2024.

            Dynasty helps advisors go independent while supporting them with tools designed to allow them to build better businesses and offer better care for their clients. As of December, 52 firms representing 330 advisors made up the Dynasty network, and the firm maintains over $88 billion on its core technology platform.

            Dynasty’s executive-in-residence program was created to bolster the firm’s commitment to and offerings for independent financial advisors by strategically leveraging the expertise of wealth management executives who have founded successful businesses. The program is a core feature of the firm’s “Advisor to CEO” program, which provides content and coaching for CEOs in Dynasty’s Network of independent RIAs, culminating with an on-campus summit at MIT’s Sloan Business School every year.

            “Today’s appointment signals a tipping point for Dynasty as it shifts into high gear navigating increasingly complex situations of unprecedented size and scope,” according to the press release, which continued, “Oden’s seasoned guidance and extensive leadership experience over three decades in financial services will be integral to Dynasty’s expansion and of enormous value to its Network of firms.”

            Shirl Penney, CEO and Founder of Dynasty Financial Partners, said he was “very pleased that Tim agreed to join us as a strategic advisor. As an architect of the RIA space and one of its longest-tenured professionals, Oden will bring tremendous value to us as we navigate this fast-growing industry, and as we evaluate our overall Core Platform product strategy and delivery, among other key initiatives.”

            Recruiter Of The Month

            Tony Montanari, Senior Vice President of Business Development, Prospera Financial Services

            In addition to its recruitment of Painter, Smith & Amberg, Prospera Financial Services recently expanded its national footprint with three recruits. Since August, Prospera has brought on four firms representing more than $1 billion in total AUM.

            In order to better understand the strategy that led to the firm’s recruitment winning streak, we reached out to Tony Montanari, Senior Vice President of Business Development, Prospera.

            WSR: Since August, Prospera has brought on four firms representing over $1 billion in total AUM. What has led to this winning streak?

            Montanari: Our culture of gold standard service is apparent from the minute an advisor begins exploring a future with Prospera to the time they retire from the industry. We remain committed to maintaining a 2.5 to 1 advisor to home office staff ratio or better. As we grow, we intend to keep this commitment to high quality service in place, which is appealing to a certain kind of advisor and practice. Providing this personalized, high-touch support in an industry built upon close-knit relationships is something at the core of our offering and will remain central to our future growth strategy.

            Tony Montanari, Senior Vice President of Business Development, Prospera Financial Services
            Tony Montanari, Senior Vice President of Business Development, Prospera Financial Services

            WSR: How do the Prospera Generational Wealth Platform and Succession Your Way services support recruitment goals? Montanari: Like all our programs and initiatives, Prospera Generational Wealth and Succession Your Way were developed with significant input from our advisors. While this may be outside the norm in larger, consolidated firms, for us, it’s standard operation. As a boutique firm, we have the luxury of taking the time to work with key stakeholders to create new programs and deliver solutions that are needed, not just what executives believe is wanted. We’ve seen significant demand for these programs, and they have served us well in our recruiting efforts.

            WSR: As Senior Vice President of Business Development, what is your role personally in the advisor recruitment process?

            Montanari: As a financial advisor with clients of my own, I experience first-hand Prospera’s platform, technology and services that set us apart every day. Having the ability to tell Prospera’s story from the lens of an advisor has really helped me work closely with our team to identify advisors and practices who would a good fit for Prospera.

            As a smaller firm that is actively but intentionally growing, we take time to get to know our potential advisors and make sure they fit into our model as well as our culture. I believe in the value we give our advisors and how we deliver it. In many ways, I serve as our chief advocate in the recruitment process.

            Jeff Berman, Contributing Editor & Reporter at Wealth Solutions Report, can be reached at jberman@wealthsolutionsreport.com.

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